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Ethereum classic has emerged as one of the most popular altcoins since its big brother ether executed a hard fork on the blockchain after the DAO hack in July 2016. During a little under a year of its existence, ethereum classic, which carries the ticker ETC, has managed to rally from under $1 to over $20 and has positioned itself within the top five largest cryptocurrencies in the market.
What is Ethereum?
You cannot talk about Ethereum Classic without talking about Ethereum first. Ethereum is a public open-source blockchain network that allows for the creation of smart contracts and decentralized apps (DApps). It was first proposed in 2013 by its founder Vitalik Buterin and went live in July 2015 after a successful ether token sale in July/August 2014.
Ethereum’s digital token ether (ETH) has emerged as the second most popular cryptocurrency after bitcoin with a market capitalization of over $35 billion. The price of ether stands $370 at the time of writing, which also makes it the fourth most valuable cryptocurrency after bitcoin, Zcash, and Byteball.
The Hard Fork That Created Ethereum Classic
In April 2016, the Decentralized Autonomous Organization (DAO) was launched to act as a decentralized venture capital fund for cryptocurrency projects. It was built as a complex smart contract on the Ethereum blockchain and was meant to allow investors to vote on proposed projects that would then receive funding through the DAO.
During its 28-day crowdfunding campaign, the DAO managed to raise $168 million dollars worth of ether and became the most successful cryptocurrency crowdsale to this day. However, there was a vulnerability in the DAO smart contract, which allowed a hacker to steal a substantial amount of the DAO’s ether holdings on June 18, 2016. The hacker was able to steal around 3.6 million ether, which